Space-based communications is viewed as one of the key markets of 2024, with satellite internet of things (IoT) being one of the key use cases in the sector, and the latest company to confirm this is IoT specialist analyst Juniper Research, which has predicted that total global revenue from satellite IoT will grow from $2.9bn in 2024 to $5.8bn in 2027.
The report, Global satellite IoT services market 2024-2030, is said to offer a comprehensive assessment of the satellite IoT market to date, including market analysis and in-depth forecasts for 60 countries compiled from a dataset containing more than 143,000 market statistics within a six-year period.
Fundamentally, the study attributes this substantial growth mainly to the increasing need for IoT connectivity in remote locations and areas that cannot be easily served by traditional terrestrial networks, such as those common in mining and the maritime industry. The study projects that the government and defence sector will generate the most satellite IoT revenue globally by 2030, accounting for over 20% of revenue.
To realise the full benefits of satellite IoT and gain the expected growth, however, the report identified the security of satellite networks as a key concern that must be addressed by service providers. The analyst noted that satellite communications add another layer of complexity to IoT solutions, with more widely spread access points to protect, resulting in increased vulnerabilities for network owners.
The study warned that network architectures arising from the integration of terrestrial and satellite networks will create new attack vectors and opportunities for fraudulent players. Going forward, Juniper advised mobile network operators and satellite network operators to invest in “robust” cyber security solutions that protect network traffic when in transit between satellite and terrestrial technologies.
“Service providers need to embed cyber security over all levels across their networks to safeguard the highly sensitive traffic associated with government and defence,” stated report author Michelle Joynson. “Reinvesting this revenue into advanced network security solutions, such as QKD [quantum key distribution], is essential in attracting a key vertical expected to spend $3.5bn over the next three years.”
The current study comes after Juniper Research calculated in August 2024 that the number of satellites in orbit that can be used for IoT connectivity will grow by 150% over the next five years. Overall, the research predicted that the number of satellites supporting IoT services will grow from 10,000 in 2024 to more than 24,000 by 2029, owing to increased demand for connectivity in nomadic locations from IoT network users. It forecast that 98% of satellites launched over the next five years will be in low Earth orbit due to the declining cost of launches.
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